Follow me on Twitter

Wednesday, January 16, 2008

JK LAKSHMI CEMENT LIMITED : MULTIBAGGER

JK LAKSHMI CEMENT LIMITED has been posting stellar results for the last five quarters in a row. The nine months Cash EPS till December, 2007 stands at 43.21 as against 27.57 for the same period previous year. At current price of 171, this stock is trading at a PE of a mere 3.6!!! The fair value of this stock should be three times the current market price at least. Long term investors can look forward to targets of 500 plus in the next one year. The company has also declared an interim dividend of 10% and record date for that is 30th Jan, 2008. If ever there was an undervalued share in the stock market, this is the one. Must Buy.

23 comments:

Excerpts from CNBC-TV18’s exclusive interview with V Swaminathan:Q: JK Lakshmi Cements numbers won a hit with you. Does that go down as a miss in this quarter?

A: Yes, I was slightly disappointed with the numbers, though the topline did grow about 23.5%. If one looks at a QoQ basis, the operating margins fell.

If one looks at Q2 FY08 vis-à-vis Q3 FY08, the operating profit margins have come down. That is a cause of worry, especially when one hears that cement prices are holding firm.

This company is one of the lowest priced on a P/E multiple basis among the North Indian cement companies. Going forward, in the second half of the year, I am looking at cement prices softening after July. So, in that case the numbers do look disappointing.

Dear Superstar , I have been reading your blog and I find it very useful and based on fundamentals ...Especially I liked the call Aurobindo Pharma - one of the stocks I believe will be an outperformer in the future ...I would like to get your view on this Textile company called Sutlej Textiles run by KK Birla Group of Companies...Please advise me on the stock as I hold some good amount on this scrip .Keep up ur good work ...Thanks

Hi Superstar.......Just by going through the comments in Moneycontrol and here, it's pretty clear that u r a real favorite among the shareholders......I am a newcomer in stock market and simply by going through your messages about cybermate, I bought 1500 shares......My question would be shall I go for 1500-2000 shares of Cat Technology now or shall I go for another 1000-1500 Cybermate shares......Kindly reply,

Hi Amogh,Thanks for appreciating. I think XL Tele is fully valued at current price on current earnings. I am not as optimistic on it as you. According to me it is at best a hold.

Hi Manoj,Both your stocks are good Holds and can be added on dips.

Hi Now or Never,Avoid Cat technologies. It does not have good fundamentals like Cybermate Info. Cybermate is any day better than Cat. You can add JK Lakshmi Cement and Godrej Industries in the current market dip. These are good quality companies.

Hi SMJain,You can continue to hold Unichem Labs and even add on dips. If you hold for long term (12-15 month). Your money can double. I have posted my views on the current market outlook and given the technical levels for the Nifty today itself in a New Post. Read that.

Hi Sandeep,Himalya Int is a good hold for the long term. It has recently inked a deal with Reliance retail. Hold with stop loss of 22.5.

Hi Guru,You didn't tell your purchase price of HFCL. Stocks like HFCL are like double edged swords, they cut both ways. It recently ran up from 20 to 60 plus on the back of rumors of FNO inclusion and telecom licence. But now since adverse news has come on both counts, it is going down non stop. I think there might be some support at 38 levels, if even that doesn't hold it might go to 32 next. But I reckon the 38 support should hold.

Hi Ashok,I had recommended a buy on Jayaswal Neco in my initial post when it was at approx. 30 and after it achieved my first target of 80-82, profit booking was clearly advised. You can hold the stock for some time and you will surely recover your cost price, but for seeing substantial profits from there you may have to hold it for more than a year.

Hi Ravindra & Kavita,To get more relevant advice from me you should also mention your cost prices of the stocks which you are asking about. Praj has been a pioneer in the ethanol business in the past and has always attracted fund manager's attention. It can be held at current price and bought on falls. NIIT has also seen some fund buying from Fidelity. It had given a 1:2 bonus in last June and had a stock split also. So, comparing its numbers is a bit time consuming. Off the cuff, I can say that it can also be held with a target of 150 in the long term.Eastern Silk is a Hold.Diamond Cables, I'd book profits in a rally.SKF is a Hold.TCS is a Hold.

Thanks Superstar. I have also bought ICSA at 550. Currently around 510 levels. I read a report that it is a multibagger with potential of hitting 1800 in the next 2 years. Do you suggest I buy more of it?Also TCS- I have TCS shares at 850 levels. Should I buy given that it is trading at 16 PE?

About Me

Hi there!
Thanks for visiting my blogspot. I live in India but consider myself a World Citizen. I have varied interests ranging from the Stock Markets, Astrology to Acting/Writing in Movies. Hope we can share our views and interact with each other through this website.
Cheers!
Navin

My Astrology site

Disclaimer

All information posted on this web site has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. Under no circumstances is this an offer to sell or a solicitation to buy securities discussed on this site. Past performance is no guarantee of future success. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise. I have positions in some of the companies discussed. All data, information and opinions are subject to change without notice. (c) 2007 All Copyrights belong to Superstar